The following materials standards have been established for a particular product: Standard quantity per unit of output 4.8 pounds Standard price $ 13.60 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 5,400 pounds Actual cost of materials purchased $ 63,280 Actual materials used in production 4,900 pounds Actual output 740 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month

$18,332 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $13.60 per pound × (740 units × 4.8 pounds - 4,900 pounds)

= $13.60 per pound × (3,552 - 4,900)

= $13.60 per pound × 1,348 pounds

= $18,332 unfavorable

We simply applied the above formula to determine the materials quantity variance for the month

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.